Does Modern Monetary Theory Say We Can Spend Without Limit?

5th May 2024

Some people say modern monetary theory says that governments can spend without limit.

without ever having to worry about the consequences. That, however, is completely untrue.

It says nothing of the sort. What it says is we can spend until the economy reaches full employment - which is something completely different.

ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax'.